Advisors have shifted their focus after fiduciary regulation was pushed back to mid 2019, Financial Advisor writes.
Leaving Fiduciary Concerns Behind, What Are Advisors Looking Towards in 2018?
Increased referrals are the primary goal of advisors in 2018, along with improving aspects such as communication and marketing, according to a December SEI survey cited by the publication.
Meanwhile, a 2017 survey by Protiviti and North Carolina State University showed advisors’ biggest concern in 2018 is technological disruption, the publication writes.
This is a shift away from last year’s focus on the Department of Labor’s fiduciary policy, Financial Advisor writes. However, firms should still adhere to proposed regulations to distinguish themselves and avoid penalties or damaged reputations, David Hyman of Mercer tells Financial Advisor.
An increase in the number of robo-advisors and do-it-yourself digital platforms will mean further automation in 2018, according to PwC’s Tom Holly, writes Financial Advisor.
Advisors could use technology such as AI to better understand clients, and to outsource middle- and back-office functions to focus on client engagement, industry insiders tell the publication.
The falling costs and growing capabilities of technology means smaller firms could survive, despite speculation that consolidations are likely, writes the publication.
Opinion is divided over whether there will be a balance between active and passive approaches, or if passive vehicles and exchange-traded funds will remain dominant in 2018, according to Financial Advisor.
Environmental, social and governance approaches to investments could attract more investors due to changing client sentiment, a predicted rise in alpha, and the ability to invest a section of a portfolio, Hyman tells the publication.
There is a debate over whether advisors will need broader investment skills or greater specialization, such as using technology for tax optimization, to attract investors, writes the publication.
Advisors should also look towards the transfer of an estimated $41 trillion of wealth to millennials, who have different needs, investment goals and preferences, according to Financial Advisor
Educating the new generation of investors, while adapting to their needs — and not sticking to the same way of doing business as before — is key for advisors to prosper in 2018, according to the publication.
